Credit manger hires in high yield as it eyes Ucits fund launch

Credit fund manager Babson Capital Europe has announced the appointment of high yield specialist Kam Tugnait as a managing director. In his new role, Tugnait will be responsible for co-managing the European high yield fund and will report to Zak Summerscale, head of loans and high yield at Babson Capital Europe.

Tugnait brings over 20 years of industry experience and was most recently head of high yield at Gartmore, where he was responsible for running the Gartmore High Yield Corporate Bond Fund. Prior to Gartmore, Tugnait served as head of high yield at Standard Bank and United Bank of Kuwait.

Having launched a global senior secured bond Ucits fund and been appointed as investment manager to another Ucits fund in the last year, Babson is now planning to launch a further Ucits fund focused on European high yield. Tugnait’s hire follows Babson Capital Europe’s expansion of its loan investment management platform into senior secured bonds and high yield bonds, adding to its existing suite of products in the credit space. As of March, Babson Capital Europe and its US parent Babson Capital Management manage $28.4 billion in assets across a number of European, US and global loan and bond funds.

Babson Capital Europe was founded in 2000. The firm is a prominent player in the sub-investment grade credit market. It invests in senior loans, mezzanine loans and buyout-related high yield bonds. Parent company Babson Capital Management is a $134.5 billion US fixed income manager and part of MassMutual Financial Group.